THE REGIONAL ECONOMIES

ECONOMIC STRUCTURE & PERFORMANCE

Each economic region is profiled in detail in a separate document. In this section, comparisons between the regions highlight some of the commonalities and some of the key differences in the regional economies.

The size of the employment base in each of the regions varies widely with Beaumont-Port Arthur the largest and Texarkana the smallest (See Figure 3). In all three economies, healthcare is the largest sector, and the retail sector is one of the top three sectors. The sector that rounds out the top three sectors in each economy is distinct. In Beaumont-Port Arthur, it is manufacturing; in Lufkin-Nacogdoches, it is education; and in Texarkana, it is government. Location quotients (LQs) measure the share of local industry employment relative to the nation (See Figure 4). A high location quotient can be an indicator of a potential competitive advantage or regional specialization. Location quotients above 1 indicate that the industry accounts for a larger share of regional employment than the industry does of national employment. LQs above 1.25 are considered to be significantly higher and are highlighted in Figure 4.

Figure 3. EMPLOYMENT BY INDUSTRY, 2020

BEAUMONT-PORT ARTHUR LUFKIN-NACOGDOCHES

TOTAL JOBS Healthcare Manufacturing Retail Trade Construction Education Accommodation and Food Services 22,614 22,502 22,162 21,092 17,698 15,429

Government

13,434 Other Services (except Public Administration) 9,851 Administrative and Support Services 8,146 Professional, Scientific, and Technical Services 7,929 Transportation and Warehousing Wholesale Trade Finance and Insurance 6,370 5,832 4,744

Real Estate and Rental and Leasing Arts, Entertainment, and Recreation

2,698 1,170 Agriculture, Forestry, Fishing and Hunting 1,089 Information 982 186,229

12% 12,237 12% 8,342 12% 9,177 11% 4,424 10% 10,368 8% 6,548 7% 5,424 5% 4,024 4% 3,687 4% 1,801 3% 2,004 3% 2,123 3% 2,650 1% 731 1% 493 1% 2,018 1% 563 78,545

16% 10,891 11% 5,581 12% 8,228 6% 3,620 13% 6,746 8% 6,626 7% 7,558 5% 3,615 5% 2,974 2% 1,478 3% 2,940 3% 2,474 3% 1,808 1% 896 1% 528 3% 759 1% 314

Mining, Quarrying, and Oil & Gas Extraction 910 Management of Companies and Enterprises 828 Utilities 747 0% 1,028 0% 480 0% 420 1% 301 1% 427 1% 317

Source: Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed. TEXARKANA 68,083

16% 8% 12% 5% 10% 10% 11% 5% 4% 2% 4% 4% 3% 1% 1% 1% 0% 0% 1% 0%

Figure 4. INDUSTRY LOCATION QUOTIENTS, 2020

Construction Manufacturing Mining, Quarrying, and Oil and Gas Extraction Retail Trade Utilities Accommodation and Food Services Education Other Services (except Public Administration) Government Healthcare Wholesale Trade Transportation and Warehousing Real Estate and Rental and Leasing Administrative and Support Services Professional, Scientific, and Technical Services Finance and Insurance Agriculture, Forestry, Fishing and Hunting Arts, Entertainment, and Recreation Management of Companies and Enterprises Information BEAUMONT-PORT ARTHUR LUFKIN-NACOGDOCHES 1.97 1.55 1.32 1.22 0.98 1.36 3.53 1.20

1.16 1.10 1.04 1.01 0.90 0.89 0.86 0.86 0.84 0.72 0.63 0.61 0.48 0.42 0.30 0.29 1.55 1.10 1.45 0.98 0.86 1.14 0.74 0.64 0.54 0.78 0.34 0.80 2.10 0.42 0.42 0.39

Source: Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed. TEXARKANA

0.92 1.05 1.19 1.24 1.35 1.29 1.09 1.02 1.39 1.17 1.00 1.08 0.77 0.72 0.32 0.63 0.91 0.51 0.43 0.25

Image by Donald Giannatti via Unsplash

In Beaumont-Port Arthur, construction; manufacturing; and mining, quarrying, and oil and gas extraction have the highest location quotients. These all relate to the region’s vibrant petrochemical cluster. In the Lufkin-Nacogdoches region, the industries that have LQs significantly above average are mining, quarrying, and oil and gas extraction; agriculture, forestry, fishing, and hunting; utilities; education; and manufacturing. Some of these relate to the region’s most distinguishable clusters – forestry and forest products; livestock production and processing; and higher education. In Texarkana, the industries with the highest LQs are government; utilities; and accommodations and food services. The high LQ in government is related to the presence of state and federal correctional facilities. Comparing changes in employment in the region since the Great Recession shows a worrisome trend (See Figure 5). Though the state of Texas and the US experienced a historically long period of expansion after the Great Recession ended, all three East Texas economies struggled to recover to their 2008 peaks. The LufkinNacogdoches region slightly outperformed the other two regions. Pandemic-induced job losses happened across all five of the geographies.

A comparison of unemployment rates in Figure 6 shows that the Beaumont-Port Arthur region has had a consistently elevated employment rate; the other two regions were more in line with rates in the state and the nation.

Figure 5. COMPARATIVE EMPLOYMENT GROWTH, 2008=100

120 Beaumont-Port Arthur Lufkin-Nacogdoches Texarkana Texas US

115

110

105

100

95

90

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

Figure 6. COMPARATIVE UNEMPLOYMENT RATES, 2008-2020

15.0 Beaumont-Port Arthur Lufkin-Nacogdoches Texarkana Texas US

10.0

5.0

0.0

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: US Bureau of Labor Statistics.

OCCUPATIONAL STRUCTURE & DEMAND

Figure 7 shows employment by occupational family. In all three economies, office and administrative support and sales and related are the largest occupational families. These two occupational families were among the top losers of jobs both prior to and during the Pandemic.

In Beaumont-Port Arthur, construction and extraction is the third largest occupational family. In Lufkin-Nacogdoches and in Texarkana, transportation and material moving is the third largest. As shown in Figure 8, there are a number of common high-demand occupations across the three regions. The transportation and material moving family of occupations is one of the highest in-demand. This includes heavy and tractor-trailer truck drivers; laborers and freight, stock, and material movers; stockers and order fillers; and light truck drivers. One of the next largest is construction and extraction, including construction laborers, carpenters, and electricians. A third high-demand occupational family is healthcare practitioners, in particular registered nurses and LVNs.

Figure 7. EMPLOYMENT BY OCCUPATION, 2020

TOTAL JOBS Office & Administrative Support Sales & Related Construction & Extraction Food Preparation & Serving Related Production Transportation & Material Moving Educational Instruction & Library Installation, Maintenance, & Repair Management Healthcare Practitioners & Technical Healthcare Support Building & Grounds Cleaning & Maintenance Business & Financial Operations Protective Service Architecture & Engineering Personal Care & Service Community & Social Service Life, Physical, & Social Science Arts, Design, Entertainment, Sports, & Media Computer & Mathematical Legal Farming, Fishing, & Forestry BEAUMONT-PORT ARTHUR LUFKIN-NACOGDOCHES

20,769 18,051 16,119 15,384 14,923 14,872 11,020 9,495 9,450 9,243 8,466 6,812 6,027 5,321 4,582 4,431 2,775 2,143 1,949 1,855 1,123 934 186,229

11% 10,515 10% 7,241 9% 3,378 8% 6,614 8% 6,174 8% 6,780 6% 5,647 5% 3,373 5% 4,052 5% 4,672 5% 5,088 4% 3,096 3% 2,239 3% 1,957 2% 645 2% 1,853 1% 1,282 1% 459 1% 754 1% 643 1% 303 1% 1,635 78,545

13% 7,696 9% 6,800 4% 3,078 8% 6,473 8% 4,703 9% 6,609 7% 4,653 4% 3,550 5% 3,026 6% 4,747 6% 3,728 4% 2,821 3% 2,404 2% 1,838 1% 559 2% 1,451 2% 1,324 1% 351 1% 622 1% 543 0% 369 2% 540 TEXARKANA 68,083

Source: Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed. 11% 10% 5% 10% 7% 10% 7% 5% 4% 7% 5% 4% 4% 3% 1% 2% 2% 1% 1% 1% 1% 1%

SOC Description 53-3032 Heavy & Tractor-Trailer Truck Drivers 47-2061 Construction Laborers

BEAUMONTPORT ARTHUR

LUFKINNACOGDOCHES TEXARKANA

Openings Median

Hourly Earnings Openings Median

Hourly Earnings Openings Median Hourly Earnings

Total Openings 1,526 $20.44 959 $19.65 864 $23.29 3,348 1,497 $16.29 391 $13.83 296 $13.64 2,183

11-1021 General & Operations Managers

1,204 $38.68 594 $35.41 384 $36.16 2,182 43-6014 Secretaries & Admin. Assists., Except Legal, Medical, & Executive 1,111 $15.92 570 $14.77 345 $14.32 2,026 41-1011 First-Line Supervisors of Retail Sales Workers 953 $18.58 510 $16.29 450 $18.08 1,913 35-1012 First-Line Supervisors of Food Preparation & Serving Workers 973 $14.24 425 $16.60 491 $15.73 1,889 53-7062 Laborers & Freight, Stock, & Material Movers, Hand 1,002 $14.34 — — 666 $14.98 1,668 29-1141 Registered Nurses 710 $33.03 405 $32.93 476 $31.66 1,591 43-3031 Bookkeeping, Accounting, & Auditing Clerks 829 $18.37 431 $16.43 304 $15.04 1,564 49-9071 Maintenance & Repair Workers, General 838 $18.24 390 $14.97 289 $15.81 1,516 53-7065 Stockers & Order Fillers 1,457 $13.77 — — — — 1,457 25-2021 Elementary School Teachers, Except Special Education 672 $26.09 348 $23.79 310 $22.16 1,330 53-3033 Light Truck Drivers 767 $14.49 232 $11.69 308 $13.34 1,307 43-1011 First-Line Supervisors of Office & Admin. Support Workers 669 $25.14 374 $22.64 250 $23.62 1,292 33-3012 Correctional Officers & Jailers 595 $22.11 336 $18.90 335 $19.52 1,267 47-2031 Carpenters 802 $23.00 201 $15.63 218 $16.14 1,221 29-2061 Licensed Practical & Licensed Vocational Nurses 562 $20.24 290 $21.46 300 $18.62 1,152 41-4012 Sales Reps., Wholesale & Mfg., Except Tech. & Scientific Prods. 779 $26.26 233 $23.29 — — 1,013 51-4121 Welders, Cutters, Solderers, & Brazers 679 $25.78 — — 301 $19.28 979 47-2111 Electricians 760 $27.31 192 $20.50 — — 952

Figure 9. TOP INDUSTRIES WHERE HIGH SCHOOL GRADUATES EMPLOYED

Retail Trade Accommodations and Food Services Construction Health Care and Social Assistance Administrative and Support Services Manufacturing Educational Services BEAUMONT-PORT ARTHUR LUFKIN-NACOGDOCHES 32% 27%

28% 30%

9% 8% 7% 8%

8% 7% 3% 10% 9% 6% TEXARKANA 36% 32% 16% 13% 4% 8% 3%

Sources: (Figure 8) Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed. (Figure 9) TPEIR a joint effort of the Texas Education Agency and Texas Higher Education Coordinating Board. Notes: (Figure 8) Includes only jobs with average wages greater than $15 per hour and that are high-demand in more than one region. (Figure 9) Includes all employed high school graduates, both those who are working only and those who are working and enrolled in a Texas public university or college. Percentages represent the average percent of each school district’s total. Only for school districts with five or more employed graduates.

ALIGNMENT OF TALENT PIPELINES

Figure 9 shows the top industries where recent high school graduates are employed. Although transportation, construction, and healthcare are the three industries with the highest in-demand jobs that pay more than $15 an hour, almost twothirds of high school graduates who go directly into the workforce upon graduation are employed in retail and accommodations and food services.

For those entry-level occupations that require a degree, a comparison of the number of completions or degree awards by career cluster can be an indicator of the alignment of the talent pipeline (See Figure 10). In Beaumont-Port Arthur and Lufkin-Nacogdoches, the regions have more than enough graduates to fill the entry-level jobs that require degrees. In Texarkana, the region has a shortage of graduates to fill open positions.

However, a comparison by career cluster shows areas of misalignment. For example, the

Beaumont-Port Arthur region is short graduates in health science. In Texarkana, the health science shortage is more acute as is the shortage of graduates in education. Note that the annual openings of transportation, distribution, & logistics includes truck drivers, which requires a commercial driver’s license. These can be acquired through a postsecondary degree program or nondegree program. Likewise, the annual openings in human services includes occupations that require licenses that can be attained through a degree or nondegree program.

Conversely, all three regions have an abundance of graduates in business, marketing, & finance; science, technology, engineering, & math; manufacturing; and law & public service. In addition, there are large numbers of graduates in education from the BeaumontPort Arthur and Lufkin-Nacogdoches areas.

Figure 10. OPENINGS AND COMPLETIONS BY CAREER CLUSTER

Career Cluster Education & Training Health Science Business, Marketing, & Finance Transportation, Distribution & Logistics Human Services Science, Technology, Engineering & Mathematics Information Technology Manufacturing Law & Public Service Architecture & Construction Arts, Audio/Video Technology & Communications Agriculture, Food & Natural Resources Hospitality & Tourism TOTAL BEAUMONT-PORT ARTHUR LUFKIN-NACOGDOCHES

Annual

Openings 867 795 Total Completions 3,368 786 Annual Openings 449 450 Total Completions 1,034 560

459 455 188 548

431 22 238 8

386 216 131 103 79 432 698 130 589 310 148 44 48 16 35 275 538 49 78 101

76 70 29 148 21 30 15 349

53 0 3,666

5 23 6,995

11 0 1,678

140 38 3,733 TEXARKANA

Annual Openings 368 Total Completions 270

438 181 139 231

226 57

159 37 38 19 35 14 28 12 0 1,554

67 212 18 91 61 89 15 0 40 1,290

Source: Emsi 2021.2 – QCEW Employees, Non-QCEW Employees, and Self-Employed and National Center for Education Statistics, Integrated Postsecondary Education Data System. Note: Annual openings include only entry-level occupations that require a degree program. Completions includes only for-credit degree or other recognized postsecondary credentials that are eligible for Federal financial aid.